Metal Bank : Large Gold System Emerging at 8 Mile Project

ASX ANNOUNCEMENT 07 Nov 2019

ASX: MBK

Large Gold System Emerging at 8 Mile Project

Latest drilling significantly enhances the potential for bulk-tonnage style gold mineralisation on the Flori's Find and Perry prospects providing improved understanding of the gold mineralisation together with indications that gold grades may increase with depth.

Both prospects are located within the same north-west trending structural corridor more than 2km apart with surface geochemistry supporting a larger interconnected intrusion related gold system more than 3.6km long.

Flori's Find Prospect

• Results from a single step back hole include: 16m @ 1.9g/t Au from 69m (true width) and confirm a westerly dip with mineralised intrusives extending more that 220m down dip with strike potential over 800m.
• Historical mine rock sample of 15% Cu. 37g/t Ag, 0.35g/t Au highlights possible leakage above a new target zone (west of current drilling).

Perry Prospect

• Broad gold zones forming a part of the outer halo of the intrusion related gold system were intersected with results including:
• • 6m @ 1.0g/t Au from 105m (within 31m @ 0.4g/t Au from 87m)
  • 3m @ 2.2g/t Au from 72m (within 23m @ 0.4g/t Au from 60m)
  • 6m @ 3.4g/t Au from 4m - new target area
• Anomalous levels of arsenic associated with the gold mineralisation are typical of the outer halo style mineralisation with potential for gold grade to improve with depth to the west and south of current drilling.

Tony Schreck, Managing Director of Metal Bank commented:

"These early results are exceptional with both the Flori's Find and Perry prospects quickly evolving into two significant gold systems located 2km apart along the same structural corridor."

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Figure 1: Location of Metal Bank Limited gold projects including 8 Mile project

Metal Bank Limited (ASX: MBK) ('Metal Bank', 'MBK' or the 'Company') is pleased to provide the following drilling update from the Eastern Target of the 8 Mile Project in southeast Queensland, Australia (refer Figure 1). Results have been received from a reverse circulation (RC) drilling and diamond (DD) drilling programme designed to investigate the geometry of near surface gold mineralisation intersected in recent drilling1 and investigate initial targets interpreted in the IP geophysical data. Ten holes were completed for 1097m RC with two holes extended as diamond drill tails for 237.7m. Nine holes were completed at Perry prospect and one hole was completed at Flori's Find prospect (refer Figure 2).

At both Flori's Find and Perry prospects the gold mineralisation is closely associated with high-level strongly altered (silica-sericite) felsic intrusive rocks with many similarities to the nearby Mt Rawdon gold mine (2Moz).

Anomalous levels of arsenic associated with the gold mineralisation at the Perry prospect are typical of the outer halo style mineralisation in intrusion related gold systems and support potential for better gold grades deeper to the west and south of the current drilling where the mineralised intrusive is interpreted to extend.

Flori's Find prospect is typical of the inner halo-style mineralisation in intrusion related gold systems with arsenic levels reducing with depth and good indications of gold grades now observed to be increasing with depth.

Data suggests that gold mineralised intrusives at both Flori's Find and Perry prospects are linked. They both lie within the same structural corridor 3.6km long defined by surface geochemistry typical of intrusion related gold systems and with ore geometries both dipping towards the west at 30 to 40 degrees (refer Figure 2).

1 MBK ASX Release 23 July 2019

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Summary of drill results:

Flori's Find Prospect

16m @ 1.9g/t Au from 69m (ETRC020)

Perry Prospect

6m @ 1.0g/t Au from 105m (within 31m @ 0.4g/t Au from 87m) (ETRC014) 3m @ 2.2 g/t Au from 72m (within 23m @ 0.4g/t Au from 60m) (ETDD016) 6m @ 3.4g/t Au from 4m - new target area (ETRC018)

Refer to Table 1 for full listing of drill results.

Figure 2: Eastern Target showing drilling and MBK soil geochemistry.

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Flori's Find prospect

One reverse circulation hole was completed to provide greater confidence on the down dip geometry of the gold mineralisation. The drill hole intersected 16m @ 1.9g/t Au from 69m (true width) and confirms a westerly dip (30 to 40 degrees) on the mineralised intrusives and extending more than 220m down dip (65m below surface), refer to Figure 4.

Review of the geophysical data and latest drilling results (refer to Figure 4) highlights a potential bulk tonnage target, (source intrusion) to the immediate west of the current drilling with Cu-Ag-Au historical working at surface above the bulk tonnage target interpreted as leakage above the target. A grab rock chip sample from the historical mine dumps returned rock chip result of 15% Cu, 37g/t Ag, 0.3g/t Au. Refer to Figure 3 showing a plan of Flori's Find prospect including rock chip results and to Figure 4 showing a cross-section.

Although drilling has only been completed on one section to date, soil geochemistry defines a >800m gold soil anomaly (5ppb to 590ppb Au) supporting the continuation of the mineralised zone for at least this length along strike (refer to Figure 3).

Figure 3: Flori's Find prospect drill plan showing gold soil geochemistry anomaly defining over 600m of strike potential and

the location of cross section shown in Figure 4.

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Figure 4: Drill section Floris Find prospect. Refer to Figure 3 showing the location of the drill section.

Perry prospect

The overall geometry of the gold mineralised intrusives appears to have a westerly dip similar to the Flori's Find mineralised intrusives with what is interpreted to be local faulting (defined in diamond drilling) offsetting the mineralised intrusive to the immediate west of the initial drilling (refer to Figure 5 showing a drill section).

An important distinction between the two prospects is that the Perry gold mineralisation is associated with anomalous As (± Sb) typical of the outer halo of intrusion related gold systems. Importantly, wide intersections such as 31m @ 0.4g/t Au, 23m @ 0.4g/t, and 46m

• 0.3g/t2 have the potential for the gold grade to increase with depth to the west (down dip) and to the south, beneath anomalous As-Sb soil geochemistry.

Perry NE prospect

Two RC holes were completed on a new target area (gold soil anomaly) approximately 700m to the north-east of the Perry prospect. Near surface mineralisation intersected, including 6m @ 3.4g/t Au from 4m (ETRC018), highlighting a new parallel mineralised structure. The mineralisation is associated with an altered intrusive interpreted to dip towards the west (30 to 40 degrees) similar to Perry and Flori's Find.

Deeper IP geophysical targets (to the east of the initial drilling) tested in this drilling programme intersected zones of alteration typical of the very outer portions of an intrusion related gold system and were not associated with gold mineralisation.

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